READY Accounts Act

This bill establishes "READY Accounts," a new type of tax-advantaged savings account for homeowners. Individuals can deduct up to $4,500 (adjusted for inflation) of annual contributions from their taxable income. Funds in these accounts can be withdrawn tax-free to pay for qualified disaster mitigation measures (like installing impact-resistant windows or reinforcing roofs) or recovery costs (repairing storm or fire damage not covered by insurance) for their principal residence. Withdrawals not used for these purposes become taxable income with an additional 20% tax penalty. The accounts must be established through a bank or approved trustee and can only be used for the homeowner's primary residence.